As reported by the Asian Review new outlet, the Hong Kong authorities are going to restrict the crypto sector. The new set of rules will be applied towards cryptocurrencies, crypto exchanges and trading platform, token sales etc.
The reason for such drastic measures is the following:
“With less stringent rules on digital currencies than mainland China, where all crypto-related commercial activities are effectively banned, Hong Kong has become a thriving market for initial coin offerings. But growing concerns over fraud and money laundering have prompted the regulator into action.”
The new regulations will require all exchanges to have a special license, the regulators have also created a list of requirement for all token sales, for instance, a token needs to exist for at least 1 year before it can go on sale. The new regulation will take effect very soon.
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